British fashion label & retailer Mulberry managed to greatly increase both its sales and profits during the last financial year, results released today showed.
Revenues at the business increased 38 per cent year-on-year in the 12 months ending March 31st 2012 to total £168.5 million, with international expansion a significant factor in this growth.
A profit before tax total of £36 million represents a 54 per cent rise compared to the previous year, with gross margins jumping an impressive 66.2 per cent during the period.
Overall retail sales were up 26 per cent like-for-like (LFL), with UK underlying trading rising 27 per cent year-on-year and online trading up 58 per cent to now make up nine per cent of all group sales.
The year brought a significant managerial change for the business, with Godfey Davis stepping down as CEO to become the brand’s new Non-Executive Chairman, and former Hermès and LVMH executive Bruno Guillon taking over day-to-day running of the firm.
Commenting on today’s results, Davis said: “This year has seen us deliver another strong set of results and we have performed well against expectations.
“While the current economic conditions make the short term trading outlook more challenging in some markets, we remain confident about Mulberry’s long term future.
“We continue to focus on developing our business internationally, opening new stores and building the foundations for long term growth.”
Much like fellow UK brand Burberry, the company has benefitted from an increase in demand for luxury items at a time of general austerity, and the growing reputation for British fashion internationally.
Wholesale & retail openings in Asia and the Americas helped international revenues grow 61 per cent in the year, with non-UK sales now making up 39 per cent of total group sales.
The company’s UK production capacity was improved by 30 per cent last year with the extension of its UK factory, and the group intends to double this capacity again with the construction of another factory in Somerset this year.
In the first ten weeks of this financial year UK LFL sales increased a further 14 per cent year-on-year, and Mulberry hopes to further strengthen its global presence with 16 new international stores.